All Forum Posts by: Edison Reis

1% Rule .... A rule, a myth or a high margin reference ?

Typically most REI's talk about the 1% however I find that is not really indicative of closing a deal or not.

I am in a area (Western Canada) where townhouses and condos are being sold for 500K or more depending the area. (i.e: 850K for a 1 bed condo in Vancouver)

We currently have two properties that are cash flowing into the 3 digits at 0.7% - 0.8% respectively.

In our market if you get 0.8% you're making a killer profit !

So .... I suggest caution when analyzing a deal by 1% rule. You may be missing out on a profitable opportunity.

1% Rule .... A rule, a myth or a high margin reference ?

Typically most REI's talk about the 1% however I find that is not really indicative of closing a deal or not.

I am in a area (Western Canada) where townhouses and condos are being sold for 500K or more depending the area. (i.e: 850K for a 1 bed condo in Vancouver) 

We currently have two properties that are cash flowing into the 3 digits at 0.7% - 0.8% respectively.

In our market if you get 0.8% you're making a killer profit ! 

So .... I suggest caution when analyzing a deal by 1% rule. You may be missing out on a profitable opportunity.

ops

Welcome to BP

We have been buying properties in the central Okanagan and did well however is becoming harder to cash flow as we are looking for next new investment property

I am currently studying these locations as my targeted areas.

What's would be your top pick ?

Thanks in advance

Edison Reis

We have been buying properties in the central Okanagan and did well however is becoming harder to cash flow as we are looking for next new investment property

I am currently studying these locations as my targeted areas.

What's would be your top pick ?

Thanks in advance

Edison Reis

Welcome to BP

We have been buying properties in the central Okanagan and did well however is becoming harder to cash flow as we are looking for next new investment property

I am currently studying these locations as my targeted areas.

What's would be your top pick ? (You were in that neck of the woods)

Thanks in advance

Edison Reis

Hi Gang,

In 2016 we bought our first two properties and are still pushing it forward.

Edison. 

@Valerie Hiscoe ! Thanks ! The goal is 5 properties in 5 years (buy and hold for rentals) so we are in a good pace to get there in the next 4.5 

Cheers

Edison

Thanks @Kristopher Hanks ! This group helped to learn the steps of risk mitigation, wealth  and real estate opportunity assessment hence gave me the tools to put "fear" under control.

Like the say .... Knowledge is power and "power" provides confidence in our daily endeavours.

All the best as always 

Edison 

@Rosston Smith ! Good morning 

Thanks for your feedback.

The first one was a 4 bedroom Townhome and the second a 2 bed plus den condo. (In the British Columbia interior , Canada) 

I have a full time job (which requires frequent trips) so my strategy isn't single family homes. Considering my situation paying a strata to take care of the property  is a money well spent.

Cheers

Edison

#Kelowna #BritishColumbia #Canada